You can beat the credit crunch!

Posted 1 year, 10 months ago at 11:13 am. 3 comments

Downsizing… Sadly, we’re all going to have to do it sooner or later. The market for thirsty iron has all but collapsed and frugal town toddlers are the only segment of the car game where there’s any hope or optimism. But here’s the thing. Tiny, fuel-sipping cars are still amazingly cheap, especially petrols. The motoring public hasn’t quite caught up with the pressing need to downsize their rides (some can’t sell the cars they’ve got) and there are still some quite surprising used bargains out there.

These days a grand buys a decent 40 mpg T plate Ford KA, three grand buys an early 50 mpg Toyota Prius Hybrid and there are 60 mpg Smart cars languishing unsold for £3,000, or less. How about an 03 plate Citroen C1 for £2,500 or a Yaris of the same vintage for five hundred quid more? Both of those are good for mid-forties mpg. Trust me, the market for super minis is currently out of kilter with the rising cost of fuel, insurance, garage labour rates and running costs, but it can’t stay that way for long. Soon we’ll see a gentle rise in values of second hand thrift mobiles and then it will be too late.

Believe it or not, but the UK is still in Credit Crunch Denial and that’s why the market is stagnant. But if you’re quick, you can bag a bargain before the inevitable downsizing desperation sets in – and it will. Remember “Cash is King” so if you really are broke, go for a £500 R or S plate Ford KA (make sure its got power steering though and comes from a private seller) or if you’ve got three grand or so, pounce on a Prius. They really are as reliable as a Toyota should be and they’re my bet for the slowest depreciating used motor of 2008. Who knows, you might even be able to turn a profit when you sell?

If you’ve seen a used Prius for even less or reckon you know of another unsung bargain second hand fuel miser, join my blog. And don’t forget, used warranties for small cars are much cheaper than the ones for big motors, but unfortunately Warrantywise don’t provide cover on cars much less than £2,000 retail money so double check that service history…